LEGIT NG
The Federal Government of Nigeria has introduced a new set of taxes on various items, including beer, imported vehicles, and single-use plastics.
The new taxes include a charge of N75 per litre for imported beer or stout in Nigeria.
According to the Nation, Minister of Finance Zainab Ahmed has announced that a charge of N75 per litre will apply to all alcoholic beverages and non-malt beers, regardless of fermentation, starting in 2023.
The excise duty on beer and stout will increase to N100 per litre in 2024. Previously, imported alcoholic beverages were taxed using valorem rates based on estimated value, but now a specific rate has been introduced.
Wine will also be subject to the same excise rate as beer for importation purposes.
More new taxes on vehicles, parts
Starting from 1st June 2023, vehicles with engine sizes of 2 liters will incur a 2% Import Adjustment Tax (IAT), while those with 4 liters and above will be subject to a 4% IAT, as per the tax laws.
On April 20, 2023, the Federal Ministry of Finance Budget and National Planning issued a circular to all Ministries, Departments, and Agencies, informing them of these changes.
Moreover, Single Use Plastics (SUPs) such as plastic containers, films, and bags will be taxed at a rate of 10% through a new Green Tax that will be imposed as an excise duty.
The IAT levy on motor vehicles has also been revised, with 2% tax being imposed on vehicles with engine sizes between 2000 cc and 3999 cc, while vehicles with engine sizes of 4000 cc and above will be subject to a 4% tax.
However, vehicles with engine sizes below 2000cc, mass transit buses, electric cars, and locally manufactured vehicles will be exempted from this tax. These changes will be effective from 1st June 2023.
